'Cap and trade' bill clears Senate panel

By Robert Schroeder, MarketWatch

Republicans absent from vote; Sen. Baucus only Democratic dissenter

WASHINGTON (MarketWatch) -- A bill that would set tough emissions limits on U.S. industries cleared a Senate panel on Thursday morning, following two days of a bill-writing session boycotted by Republicans.

By a vote of 10-1, members of the Senate Environment and Public Works Committee approved a bill that aims to slash greenhouse gas emissions and boost investment in alternative energy technologies. Sen. Max Baucus, the Montana lawmaker who chairs the Senate Finance Committee, was the only Democrat to vote against the measure.

Republicans sat out the vote. Members of the GOP were all but absent this week as Sen. Barbara Boxer, the California Democrat who chairs the panel, conducted the committee's "mark up," or bill-writing session. Republicans said they didn't have enough analysis of the bill or time to consider it.

The measure faces scrutiny by five other committees before reaching the Senate floor.

The bill would set up a "cap and trade" system, which sets limits on pollutants and allows utilities and other emitters to trade pollution permits among themselves.

The bill targets a reduction in pollution of 20% by 2020 and 80% by 2050 from 2005 levels. Proponents like Boxer and co-sponsor Sen. John Kerry, D-Mass., say the bill will clean the environment and create new jobs, (if you believe that I've got a bridge to sell you) but Republicans say the bill amounts to a huge tax on U.S. industries and families.

A similar measure has already passed in the House.